False Representations And Broken Promises

Submitted By alanating
Words: 1947
Pages: 8
Open Document
Chapter 6
Enforcing deals

Chapter 6 | Enforcing deals
1.
2.
3.
4.
5.
6.

False representations and broken promises
Terms of the contract
Non-contractual representations and promises
Enforcing the contract
Remedies
The end of the contract

False representations and broken promises
Chapter 6
Enforcing deals

False representations and broken promises
• The legal consequences of making a false representation (statement of fact) or breaking a promise depend upon whether the representation or promise was:
– a term of the contract,
– a statutory term, or
– a non-contractual representation or promise.

Figure 6.1

Terms of the contract
Chapter 6
Enforcing deals

Terms of the contract

•The terms of the contract are the specific details of the agreement, including each party’s rights and obligations.
•Broadly speaking, there are two types of contractual term: express terms and implied terms. Implied terms include those implied by the courts and any relevant statutory terms.

Express terms
• There are two ways by which a term becomes an express term of the contract: – By inclusion in a signed written contract.
– By being brought to the attention of the other party by reasonable notice.

Express terms
• If a term is in a written contract that has been signed by the parties, it is a binding and enforceable term of the contract, even if one of the parties has not actually read and understood the written contract:
– L’Estrange v Graucob (1934)
• Situations where a signed contract may be unenforceable include:
– cooling off periods, and
– non est factum.

Express terms
• If a statement is not contained in a written and signed contract it will only be an express term of the contract if the other party had reasonable notice of the statement.
• A statement brought to the attention of X after the contract had already been formed will not be a term of the contract:
– Olley v Marlborough Court (1949)
– Thornton v Shoe Lane Parking (1971)
– Thomson v London, Midland and Scottish Railway Co
(1930)

Implied terms
• Courts are frequently willing to imply a term into a settled contract to ‘fill the gaps’, as long as it is:
– reasonable and fair,
– necessary to make the contract viable,
– so obvious that it ‘goes without saying’,
– able to be clearly expressed, and
– consistent with the express terms.

Implied terms continued
• The court will imply into the contract a term of which the parties are deemed to be aware as a result of prior dealings:
– Balmain New Ferry Co Ltd v Robertson (1906)

Statutory terms
• The sale of goods legislation implies statutory terms that protect the buyer into contracts for the sale of goods. • (Similar terms are implied into consumer contracts by the ACL: these are considered in Chapter 8.)
• A contract for the sale of goods is a contract where a seller transfers, or agrees to transfer, the ownership of goods to a buyer in return for a monetary price.

Implied terms protecting the buyer
• In every contract for the sale of goods there is an implied:
– condition that the seller has title, i.e. the right to sell those goods to the buyer,
– condition that the goods will correspond with their description, – condition that the goods will be of merchantable quality,
– condition that the goods will be fit for their purpose,
– condition that the bulk of the goods will correspond with the sample.

Statutory terms
• A seller will have breached the statutory implied term regarding merchantable quality if:
1. the contract is for the sale of goods;
2. the buyer has relied upon a description of the goods;
3. the seller normally sells goods of that description;
4. the goods are not of merchantable quality; and
5. the buyer has not examined the goods or, if they have examined the goods, the defect is not one that would have been revealed by the examination.

Statutory terms
• A seller will have breached the statutory implied term regarding fitness for purpose if:
1. the contract is for the sale of goods;
2. the seller
Show More

Related Documents: False Representations And Broken Promises

Essay on International Business

to solve problems 2. Wisdom-knowing which knowledge to use 3. Information- McKenzie’s 7 S’s: Strategy: 1. Plan to maximize you gain 2. Pattern of behavior 3. Ploy can’t enter the game if we done know how to play the game 4. Position 5. Perspective Lecture Notes: Globalizations: the shift towards a more integrated and interdependent world economy 1. The world is moving away from self-contained national economies toward an interdependent, integrated global economic system What’s…

Words 2689 - Pages 11

Essay on Economics Guided Reading Answers

ANSWER KEY Chapter 1 Chapter 1–1 II.D. the accumulation of those economic products that are tangible, scarce, useful, and transferable 1. scarcity of resources, which results from society not III.A. the market having enough resources to produce all of the things people would like to have III.B. the markets in which productive resources are bought and sold 2. A need is a basic requirement for survival and III.C. in product markets IV.A. the amount of output…

Words 8258 - Pages 34

Crime: Criminal Law and Court Essay

Crime – Chapter 1 Crimes Act 1900 (NSW) – the legislation under the Constitution regarding criminal law within our state. Crime – ‘any conduct which violates the rights of the community at large, punishable by a recognised criminal sanction upon proof of guilt in a criminal proceeding presented by two parties and a judicial officer.’ Criminal law is concerned with the protection of society. Criminal actions can be crimes a person, the state and/or property. The Crown (state) take legal action…

Words 3295 - Pages 14

Business And The Decline Of Business In The United States

1 FEDERAL REGULATION AND CURRENT WORKPLACE ISSUES BY GINA EKWEALOR JANET FOLAYAN SYLVESTER COBBS 2  CHAPTER 14  U.S BUSINESS AND THE DECLINE OF COMPETITION CHAPTER 15  RISE OF REGULATION AND CORPORATE SOCIAL RESPONSIBILITY CHAPTER 16  WORKPLACE ISSUES I: EMPLOYMENT VERSUS PERSONAL DIGNITY CHAPTER 17  WORKPLACE ISSUES II: DESIGNING A BETTER ORGANIZATION 3 U.S. BUSINESS AND THE DECLINE OF COMPETITION  The origins of business in the United States can be traced through the 6 stages…

Words 3464 - Pages 14

Essay on S. 51 (Xxi)

constitution, specifically section 51 (xxi). First I will give you a bit of surrounding knowledge about where this section is in the constitution, and what it does. | Section 51 is in the first of 8 chapters, which sets up the legislative part of the government, the parliament. And is in part 5 of this chapter, which lays out the powers of the parliament. This part of the constitution includes everything from “51. Legislative powers of the Parliament, 52. Exclusive powers of the Parliament, 53. Powers…

Words 1632 - Pages 7

IBE Essay Jeroen Achterberg

1. Introduction ................................................................................................................ 4 2. Multilateral Trade Liberalisation and Regional Trade Agreements ........ 5 3. Regional Trade Agreements in contrast to Multilateral Trade Liberalisation ...................................................................................................................... 7 4. Conclusion…

Words 2629 - Pages 11

John Winthrop's Beliefs

survival of parliament with his rule as king, he raised taxes and married a catholic princess and he promoted a religious doctrine that the puritans did not like. Parliament began to crumble and with no parliament the puritans would have no way of enforcing god's will. With Charles in power the Anglican Churches established by Elizabeth supported the views of the puritans but those churches became overrun with what the puritans called Arminianism. The churches became more “wicked” to the puritans and…

Words 2742 - Pages 11

Study Guide To Accompany Canadian Business And The Law

Study Guide to accompany Canadian Business and the Law, 5th edition Chapter 2 CHAPTER 2 THE CANADIAN LEGAL SYSTEM Objectives After studying this chapter, you should have an understanding of • the impact of the Canadian legal system on business • the role of constitutional law in protecting commercial rights and freedoms • the government’s law-making powers under sections 91 and 92 of the Constitution Act, 1867 • the executive’s formal and political functions in regulating business • the judiciary’s…

Words 5659 - Pages 23

Study Guide To Accompany Canadian Business And The Law

Study Guide to accompany Canadian Business and the Law, 5th edition Chapter 9 CHAPTER 9 TERMINATION AND ENFORCEMENT OF CONTRACTS Objectives After studying this chapter, you should have an understanding of • the termination of a contract by performance • the termination of a contract by agreement • the termination of a contract by frustration • the methods of enforcing contracts • the concept of privity • remedies for breach of contract Learning Outcomes • • • • • • Understand that the best…

Words 4666 - Pages 19

SSC/SST Chapter 18 Essay

Introduction to Geography Chapter 1 • Geography is the study of the interaction of all physical and human phenomena at individual places and of how interactions among places form patterns and organize space. • Physical geography studies the characteristics of the physical environment. • Human geography studies human groups and their activities, such as language, industry, and the building of cities. This is a social science • Most contemporary geographers employ three analytical methods: Area…

Words 4593 - Pages 19